Discount Investment may sell stake in Israeli supermarket Shufersal

* Discount Investment Corp said on Monday it was considering selling shares in Israel’s largest supermarket chain, Shufersal, in an auction to institutional investors.

* Discount Investment, which controls Shufersal with a 50.1 percent stake, said its board of directors instructed the company to examine a possible sale of shares in order to improve its financial flexibility.

* Neither the timing of a possible sale nor the amount of shares to be sold has been set, Discount Investment said in a statement to the Tel Aviv Stock Exchange.

* Discount Investment said there was no certainty it would decide to sell its shares, in an auction or otherwise. (Reporting by Ari Rabinovitch; editing by David Evans)